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CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE JANUARY | FEBRARY 2022 DISRUPTING LOGISTICS O P - E D Integration of order management system W A R E H O U S I N G The future of warehousing P A C K A G I N G A quest towards sustainability NOUR SULIMAN NEW TECHNOLOGIES REDEFINING THE LOGISTICS INDUSTRY CHIEF EXECUTIVE OFFICER, DHL EXPRESS MIDDLE EAST AND NORTH AFRICA
A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS:
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 3 DISRUPTING LOGISTICS 18 TRUCKS THE WAY FORWARD Traversing extreme off-road conditions or long-haul routes? IVECO’s Fabio De Serafini shares how the new trucks are perfect for these missions 28 TRUCKS CONTINUOUS GROWTH UD Trucks announces exceptional growth across the MEENA region in 2021 30 ELECTRIC FLEETS A GREENER TOMORROW Electric vehicle (EV) charging app, Monta, and e-mobility solution provider, CITA EV, recently partnered to help supercharge EV charge point infrastructure in the Middle East, Casper Rasmussen, CEO and Co- founder at Monta tells us more 32 WAREHOUSING THE FUTURE OF WAREHOUSING Automation, robotics, and energy efficiency are at the centre of warehouse innovation. David Taylor, Commercial Director at Flogas reveals 36 OP-ED INTEGRATION OF ORDER MANAGEMENT SYSTEM Alain Kaddoum, Managing Director, Savoye Middle East, Savoye, shares about the limitless benefits of incorporating an order management system 38 PACKAGING A QUEST TOWARDS SUSTAINABILITY Tetra Pak Arabia’s Managing Director, Niels Hougaard, speaks to Logistics news ME about the latest efforts of the company in making the regional food and beverage industry more sustainable 42 INTERVIEW A CENTRAL SOLUTIONS PROVIDER Paul Morgan, the CEO of Centre Point Logistics (CPL) reveals his plans for the company, the changes he has brough about, and how the pandemic has impacted the industry 46 CARGO TO RUSSIA WITH LOVE UAE-based Dibba Bay Oysters rely on Emirates SkyCargo to export premium oysters to Moscow Nour Suliman, The Chief Executive Officer of DHL Express MENA speaks to Logistics News ME about new technologies that are redefining the logistics industry 22 18 32 IN THIS ISSUE
MARCH 29, 2022 VIRTUAL EVENT As a celebration of women business leaders across the Middle East and Africa, Mastercard has partnered with Entrepreneur Middle East to present the first ever Women SME Leaders Awards 2022. We are inviting every women SME leader across all walks of life- individuals and organizations- to take part. There are no costs for attending or nominating at this event. Good luck to all and let’s celebrate women SMEs together! RECOGNIZING THE ACHIEVING WOMEN OF MIDDLE EAST AND AFRICA
WOMENSMELEADERS.COM #WOMENSMELEADERS NOMINATE NOW
8 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM All rights reserved © 2022. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP SUBSCRIBE subscriptions@bncpublishing.net For all commercial enquiries, contact sales@bncpublishing.net T +971 50 440 2706 PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 Keep up to date with all the latest news, features and much more on our website and social media platforms. CBNME.COM CBNME @CBNME CONSTRUCTION BUSINESS NEWS ME CEO Wissam Younane wissam@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net GROUP PUBLISHING DIRECTOR Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 BUSINESS DEVELOPMENT DIRECTOR Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 MANAGING EDITOR Kasun Illankoon kasun@bncpublishing.net EDITOR Jochebed Menon EDITORIAL DESIGN Christian Harb MARKETING EXECUTIVE Aaron Joshua Sinanbam aj@bncpublishing.net PHOTOGRAPHER Alexander Bungas EDITOR’S NOTE LNME While the supply chain crisis is still something we’re battling and trying our best to resolve, the way the industry has responded to the need of the hour is praiseworthy – whether it be last mile delivery, innovation in eCommerce, marketplace launches and warehousing solutions, the industry has powered through. This year, we’ll focus on newer technologies that are breaking through the logistics sector and shine the light on marketplaces. Prior to 2020, logistics companies were reluctant to make the switch to digital and were more reliant on manually carrying out tasks. The pandemic pressed them to move online. Sustainability in the logistics and supply chain sectors is another area we’re going to focus more on in the year. It’s the need of the hour and we’ve seen the big movers take the right steps towards this. Lastly, we thank you, our readers, for providing us with your support throughout 2021 and we hope to bring out the latest and most interesting information from the logistics industry to you. We’ve got some interesting stories in this issue, so happy reading! R esilience is the world of the year for 2021. As we enter 2022, we’ve begun to accept the fact that COVID-19 isn’t going anywhere, and we have to live with it. But we have to give it to ourselves and to the industry for standing in the face of this pandemic despite the various variants. Jochebed Menon Editor, Logistics News Middle East jochebed@bncpublishing.net
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12 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM H H Sheikh Ahmed bin Saeed Al Maktoum, Chair- man of Dubai Integrated Economic Zones Authority (DIEZ), appointed a new leadership team to drive DIEZ’s free zones and central divisions towards a new era of excellence and integra- tion. DIEZ aims to raise Dubai’s position as a regional and global investment desti- nation and contribute to achieving the emirate’s stra- tegic priorities through its economic zones, which are the Dubai Airport Free Zone, Dubai Silicon Oasis, and Dubai CommerCity. Further, DIEZ aims to boost economic growth, contribute to shaping the future eco- nomic map of Dubai, and create more diverse invest- ment opportunities. HH Sheikh Ahmed bin Saeed Al Maktoum empha- sised that the new appoint- ments for the Authority’s top leadership positions came in line with the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minis- ter of the UAE and Ruler of Dubai, in developing and strengthening the role of human resources for sustain- able growth, business expan- sion, and in consolidating the emirate’s position as a global investment hub. He called on them to strengthen the spirit of teamwork and openness, foster best practices, im- prove commercial services and solutions, and stimulate the culture of innovation and proactive thinking while keeping pace with the rapid economic developments. HH Sheikh Ahmed added: “We look forward to the suc- cess of the Dubai Integrated Economic Zones Authority and its new structure. We are confident in the com- petence of our new top officials, which they have proven over the past years. We believe in their capabili- ties to lead the Authority in providing comprehensive and integrated solutions to the business community and investors in the free zones in Dubai. “DIEZ presents an equal economic model that creates new prospects and expan- sion opportunities through providing seamless and ef- ficient services and solutions to the business community, which in turn improve the operational efficiency of the three free zones.” Amna Lootah was appoint- ed as a Director General DAFZ to lead and implement strategic plans according to the approved structure, driven by its vision, mission, and values. Further, Lootah will also lead the executive management team at the Dubai Airport Free Zone. Dr. Juma Al Matrooshi was appointed as Director- General of Dubai Silicon Oasis (DSO) to supervise the implementation of its strat- egy according to the new organizational structure. At central divisional func- tions, Eng. Muammar Al Kathiri was appointed as Chief Engineering & Smart City Officer in the Authority to lead and direct engineer- ing planning and make stra- tegic planning, design, and construction decisions. For DIEZ’s financial goals, William Chapel will serve as Chief Financial Officer (CFO) in DIEZ, where he will be re- sponsible for financial man- agement. He will oversee strategic financial direction to ensure the achievement of strategic business objectives and increasing economic re- turns for all stakeholders. Youssef Behzad was ap- pointed as Chief People & Organizational Development Officer at DIEZ to lead and implement the institutional approach in empowering human capital, ensuring the quality of human resources in all departments and the authorities’ functions. In addition, the duties include providing means to enhance the effectiveness and ef- ficiency of the organizational structure, backed by creative talents capable of leading operations to achieve the organizational goals. Bader Buhannad will as- sume the position of Chief Corporate Support Officer at DIEZ. He will be manag- ing and directing digital and information technology activities, managing the supply chain, in addition to providing the necessary guidance for the Authority’s integrated management and project management office functions. The list of appointments also included Saeed Al-Su- waidi as the new Chief Legal & Regulatory Affairs Office at DIEZ and Abdul Rahman Ba- saeed, Chief Internal Audit & Enterprise Risk Management Officer. REGIONAL NEWS LNME 12 | LOGISTICS NEWS ME | JANUARY 2022 DIEZ ANNOUNCES NEW LEADERSHIP TEAM TO STEER GROWTH PATH FOR FREE ZONES
REGIONAL NEWS DP WORLD INTRODUCES CARGOES CUSTOMS TO ENABLE TRANSPARENCY AND PAPERLESS TRADING D P World announced the launch of its new digital compliance and revenue platform, CARGOES Customs to facili- tate completely paperless trade. This will ease the flow of the customs process using innovative technology solutions, in- cluding an Artificial Intelligence driven risk engine and smart valuation. Its advanced classification wizard, based on ma- chine learning, vastly reduces classification issues. It is designed and supported by customs experts and digital transformation leaders and is backed by more than 40 years of experience in logistics to solve challenges in the supply chain. CARGOES Customs provides an intelligence-en- abled, unified customs operating model that opti- mizes border management and revenue collection activities. The system empowers customs agencies to facilitate trade, secure global supply chains, and increase compliance. At the same time, it minimises revenue leakage for government agencies. The platform is built to assist global customs organizations in reform- ing and modernizing processes by streamlining digital transformation through the latest technol- ogy and tools. The CARGOES Customs platform is based on the belief that with technology as a foundation, any customs organization can vastly improve its digital capabilities and better integrate with key agencies and other countries, while also satisfying any regional agreements. The CARGOES Customs system is further en- hanced by its powerful risk engine which detects revenue leakages. This technology improves visibility and traceability, and is based on WCO best practices, thereby optimising the customs clearance process. As an intelligent risk engine, it helps enforce compliance and promotes seamless collaboration between authorities, government departments and stakeholders. Offering a single window interface, CARGOES Customs is highly configurable and uses a tem- plate-based design which means customs organi- zations can update or roll-out new services at the click of a button. It supports all file formats com- monly used in customs, and is WCO, WTO and SAFE framework compliant. Sultan Ahmed Bin Sulayem, Group Chairman and Chief Executive Officer ofP World said: “Trade is a key driver to help economies around the world to recover fairly and sustainably from the eco- nomic shock of the pandemic. At DP World, we are doing our part to make trade flow as smoothly and seamlessly as possible, and with CARGOES Customs we really help customs authorities around the world to become dramatically more efficient – now and for the long term. “This new digital solution connects customs of- ficials and traders through an easy-to-use interface and a suite of custom-built tools. We will continue to invest in our digital platforms to bring simplic- ity, transparency and efficiency to global trade – at customs, and beyond.” Pradeep Desai, Chief Technology Officer, DP World added: “Demand for digital solutions has never been higher and will only keep growing. We are leveraging technology to create value for our customers and help drive growth. CARGOES Customs by DP World is part of the broader CAR- GOES software suite of products. “DP World created CARGOES to solve press- ing challenges caused by supply chain related inefficiencies. It’s a holistic solution powered by technology targeting all aspects of global trade including Finance, ERP, Tracking, Terminal Op- erating System, Customs software and enabling end-to-end logistics. We are excited to provide Logistics as one of our first CARGOES offerings to customers.”
14 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM REGIONAL NEWS LNME N icolas Sibuet brings over 26 years of experience across the shipping, oil and gas, and aviation industries to Aramex where he will serve as the Chief Financial Officer (CFO). Most recently, he served as CFO and Acting Senior Vice President for Strategy, Market- ing and Communications at Abu Dhabi Airports. Sibuet also has extensive ex- perience as an expert advisor to Boston Consulting Group where he worked on transforming and restructuring companies. Additionally, he was the Vice President for Marketing and Business Development at Weatherford, where he partici- pated in the restructuring and disbursement of Weatherford drilling contracting arm, WDI. Prior to that, he held multiple roles in the oil and gas and shipping industries, delivering successful funding requirements to support business growth as well as leading and structuring finance departments. Othman Aljeda, Chief Execu- tive Officer of Aramex, said: “I am pleased to welcome Nicolas as Aramex’s CFO. He is a sea- soned executive with a proven track record of leading compa- nies towards transformational growth and has deep knowl- edge in various industry trends. “His extensive experience will play a key role in the execution of our strategic priorities and will enable us to further opti- mise our recently redesigned operating model, as we seek to grow our global market share. The management team and I are looking forward to working closely with Nicolas to enable the company achieve sustain- able growth for our key stake- holder groups.” Sibuet holds a master’s degree in Economics and Ac- counting from the University of Western Brittany in France and a postgraduate degree in Finance from the Strasbourg University in France. ARAMEX APPOINTS FORMER ABU DHABI AIRPORTS’ CFO AS CHIEF FINANCIAL OFFICER
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 15 REGIONAL NEWS F edEx Express announced the launch of FedEx Interna- tional Priority Express (IPE) in the UAE offering custom- ers who ship internationally the flexibility to schedule delivery by 10:30 am or noon to select destinations world- wide. With the addition of this new service, FedEx now provides a wider range of time-definite international priority shipping options to its customers. Businesses across the Middle East region can select the right delivery option that suits their needs with choices, giv- ing them enhanced convenience and flexibility. The newly launched FedEx International Priority Express (IPE) service provides customers in the Middle East with delivery by 10:30 or noon to select markets in Asia, the United States, Canada, and Europe. FedEx International First offers customers in the Middle East the option for early-day delivery to select postal codes and destinations in the United States, Canada, and Europe. And FedEx International Priority (IP) offers end of the day delivery to more than 220 countries and territories around the globe. These time-definite cross-border delivery options are part of FedEx efforts to support businesses amidst the soaring demand for cross-border commerce. Across the Middle East and Africa, the Freight and Cargo market is expected to reach USD315 billion, growing at a compound annual growth rate (CAGR) of 4% by 2027. “Adding International Priority Express (IPE) is an important enhancement to our portfolio and we’re launching it at a critical moment in time. As economies begin to recover, businesses and consumers alike are placing heightened value on trackable, time-definite delivery, and the segment is set to grow,” said Kawal Preet, president, Asia Pacific, Middle East, and Africa region, FedEx Express. IPE is an enhanced service with delivery windows early in the day for critical time sensitive shipments. The expanded range of solutions we now offer gives businesses of all sizes greater control, by providing them with more choices that match their needs.” FEDEX EXPRESS OFFERS NEW TIME-DEFINITE DELIVERY OPTIONS T radeling has appointed Iyad Kamal as a member of its Board of Directors. Tradeling is the Dubai-based hyper-growth e- marketplace focused on business-to-business (B2B) transac- tions in the Middle East and North Africa region. Iyad Kamal, a seasoned logistics and supply chain expert and business operations executive brings vast experience in cross-border logistics and operations and will be collaborating with Tradeling’s executive management team in developing the company’s logistics expansion plans and capabilities in the UAE and across the MENA region. Kamal has over 30 years of solid and progressively responsible expe- rience in the field of logistics and operations, as well as last-mile deliv- ery. He was at the helm of operations at Aramex for 29 years the last 10 of which he served as the company’s Chief Operating Officer. At Aramex, Kamal was instrumental in building and transforming the logistics giant into a global brand. Since leaving Aramex, he has been advising global logistics players and startups on international expan- sion, digital transformation, strategy, and operations.Commenting on the occasion, Marius Ciavola, CEO of Tradeling said: “We are excited to welcome Iyad as our newest board member. His expertise in the field will be essential in helping guide our operations to achieve rapid growth and steering our expansion across the region. I am glad to be joining Tradeling’s board of directors, and eager to contribute to the company’s strategic growth in order to enhance its regional reach and positioning as the leading B2B platform,” added Iyad Kamal. FORMER ARAMEX COO IYAD KAMAL GETS APPOINTED TO TRADELING’S BOARD
REGIONAL NEWS LNME #LNMEforum LOGISTICSNEWSME @LOGISTICSNEWSME LOGISTICS NEWS ME CBNME.COM LOGISTICS FORUM 2022 INNOVATION IN TECHNOLOGY How blockchain, artificial intelligence and IoT is revolutionising the logistics and supply chain industries 1 WAREHOUSING How automation is reinventing the warehousing business and disruptive technologies are allowing warehouses to accommodate the F&B, retail and pharma sectors’ growing requirements. 2 SUPPLY CHAIN WOES The shipping network upended by the pandemic shows no respite – supply chains continue to find itself in a logistics knot, ports face a never-seen-before congestion and shipping rates are yet to fall. What is the solution? 4 SUSTAINABLE MOBILITY Green fuels, sustainable infrastructure and sustainable modes of transport 3 Topics FOR SPEAKING OPPORTUNITIES KASUN ILLANKOON +971 56 135 4769 kasun@bncpublishing.net JOCHEBED MENON +971 55 969 8037 jochebed@bncpublishing.net FOR SPONSORSHIP OPPORTUNITIES CLAYTON RODRIGUES +971 50 929 3982 clayton@bncpublishing.net JOAQUIM D’COSTA +971 50 440 2706 jo@bncpublishing.net MARCH 29 FAIRMONT THE PALM
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 17 REGIONAL NEWS A .P. Moller – Maersk an- nounced new aspiring emis- sions targets expected to align the company with the Net Zero criteria of the Sci- ence Based Targets initiative (SBTi) path- way to limit global warming to 1.5°C. They include a societal commitment to act now and drive material impact in this decade, and a commitment to deliver net zero supply chains to customers by 2040. The targets go beyond previous efforts to reduce emissions related to the ocean fleet as they cover all direct and indirect emissions across the entire Maersk busi- ness. “As a global provider of end-to-end lo- gistics services across all transport modes, it is a strategic imperative for Maersk to extend our net zero ambition to the total footprint of the business. The science is clear, we must act now to deliver signifi- cant progress in this decade. These very ambitious targets mark our commitment to society and to the many customers who call for net zero supply chains,” says Soren Skou, CEO of A.P. Moller – Maersk. Tangible near-term targets for 2030 are set to ensure significant progress on curb- ing direct Maersk emissions already in this decade. These include a 50% reduction in emis- sions per transported container in the Maersk Ocean fleet and a 70% reduction in absolute emissions from fully controlled terminals. Depending on growth in the ocean business, this will lead to absolute emissions reductions between 35% and 50% from a 2020 baseline. “Our updated targets and accelerated timelines reflect a very challenging, yet viable pathway to net zero which is driven by advances in technology and solutions. What is needed is a rapid scale-up which we will strive to achieve in close collabo- ration with customers and suppliers across the entire supply chain,” says Henriette Hallberg Thygesen, CEO of Fleet & Stra- tegic Brands, A.P. Moller – Maersk. As recommended by SBTi, over the dec- ade Maersk will go above and beyond the 1.5°C-aligned targets and invest in build- ing a portfolio of natural climate solu- tions that will result in around five million tonnes of CO2 savings per year by 2030. To maximise progress towards net zero supply chains in 2040, ambitious 2030 targets for a range of green product offer- ings are introduced, adding to solutions including Maersk’s Emissions Dashboard and Maersk ECO Delivery. They aim to reinforce Maersk as a lead- ing provider of green supply chain solu- tions and cover ocean, air, contract logis- tics (warehouses and depots) and cold chain. These products will utilise green technologies and solutions to ensure that they provide real emission reductions within the supply chain. Covering indirect emissions means the targets also address emissions from e.g., inland transport services and vessel build- ing which are provided by third party sup- pliers. Tackling this challenge will require extensive data insights and close collabo- ration with local and regional suppliers of products and services across the Maersk business footprint. Maersk’s 2030 targets include: > Ocean: Around 50% reduction in green- house gas emissions intensity > Terminals: Close to 70% absolute reduc- tion of greenhouse gas emissions > Natural Climate Solutions used above and beyond 1.5°C target to build a port- folio that generates around five million tons of CO2 savings per year by 2030 > Ocean: 25% of all cargo transported us- ing green fuels > Air: Minimum 30% of cargo transported using Sustainable Aviation Fuels (SAF) > Contract logistics (warehouses and depots) and cold chain: Minimum 90% green operations > Inland transportation: Industry leading green offering – targets will be set during 2022 MAERSK ACCELERATES NET ZERO EMISSION TARGETS TO 2040 AND SETS 2030 TARGETS
18 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM TRUCKS LNME THE WAY FORWARD Traversing extreme off-road conditions or long-haul routes? IVECO’s Fabio De Serafini shares how the new trucks are perfect for these missions
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 19 THE WAY FORWARD | FABIO DE SERAFINI, BUSINESS DIRECTOR, IVECO AFRICA & MIDDLE EAST I n June 2021, Turin-based Indus- trial Vehicles Corporation (IVECO) introduced its new range of off- road and on-road trucks T-WAY and S-WAY in Europe. Following which, it launched the trucks in the Middle East in December 2021. Fabio De Serafini, Business Direc- tor, IVECO Africa & Middle East, tells Logistics News ME about the key features of the two models including safety, efficiency, and perfor- mance. Tell us about the T-WAY and S-WAY, and what makes it a right fit for the construction sector. The IVECO T-WAY is the off-road ve- hicle designed and engineered for the toughest missions in the most extreme conditions, which takes over from the TRAKKER. It introduces a new Hi- Tronix automated transmission with functions specifically developed for off-road mobility. IVECO completes the IVECO WAY heavy range with the IVECO S-WAY the on-road truck developed to deliver a complete package of features focused on the driver, on efficiency and business oriented. The IVECO S-WAY delivers a fuel efficiency increase of up to 4% with a new engine line-up, a redesigned cabin, and advanced features, further reducing its total cost of ownership and raising the stakes on business productivity. What makes these two models suit- able for the UAE – considering the climate and weather conditions? With the new T-WAY and S-WAY, IVECO is offering customers com- plete and renewed business-oriented product range for both off-road and on-road application. The new range is perfect to work in in the most extreme climate and weather conditions both for their robustness and the new cabin comfort, the air conditioning system, and integrated parking cooler and heater systems ensure an ideal internal climate within the cab in all weather conditions, when driving or during stops. “SUSTAINABILITY ENTAILS OUR RESPONSIBILITY TO MAKE THIS JOB, WHICH IS CRUCIAL FOR OUR SOCIETY. THE NEW IVECO WAY RANGE IS THE CULMINATION OF A PRODUCT INNOVATION CYCLE THAT IMPROVE PRODUCTIVITY AND FUEL EFFICIENCY TO FACE THE SUSTAINABILITY CONCEPT.” >>>
20 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM TRUCKS LNME Elaborate on key features of the T-WAY and S-WAY. The IVECO T-WAY is the toughest vehicle we’ve engineered for extreme off-road missions and the new IVECO S-WAY is a driver-centric long-haul truck. Along with a new Hi-Tronix automated transmission with func- tions specifically developed for off-road mobility, the T-WAY also boasts new rear disc brakes, heavy-duty rear suspension system for tandem axles, lower kerb weight and a host of features such as the off-rode mode, together with ESP, hill holder and high- comfort cab add up to outstanding efficiency and safety. The IVECO T-WAY has been designed to offer best-in-class performance in every off-road mission, robustness, and torsional rigidity. It carries over from its predecessors the legendary ro- bustness of the high-resistance steel chassis with a 10mm thick frame, with a rail bending moment at the top of the segment at 177 kNm. The front axle has a maximum capacity of up to nine tonnes. Hub reduction on the rear axle is standard to maximise strength and performance. The heavy-duty rear suspension system for tandem axles op- timises vehicle weight and improves off-road performance with greater ground clearance and a better departure angle. The IVECO T-WAY delivers all the power needed for traction and PTO with IVECO’s reliable and efficient Cursor 13 engine (13 litres) that develops up to 470/480 hp.
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 21 UD TRUCKS LAUNCHES NEW EURO 5 RANGE IN THE REGION The engines are coupled with the proven 16-speed Hi-Tronix automated gearbox, which now also features new functions specifically intended for off-road mobility including a hill holder function to help departure on steep slopes, rocking mode to help recover traction in slippery condi- tions and Creep Mode for ultra-low speed when idling; for the on-road sections of the mission, the Ecoroll, function that uses the vehicle’s inertia when travelling downhill enhances the transmission’s efficiency. With the S-WAY, IVECO has redesigned the cab from the ground up and taken every opportunity to deliver cost savings and productivity gains to the benefit of the owner’s profitability. All the elements of the new design work together to achieve a superior aerodynamic performance and deliver fuel savings up to 4% on top of the outstanding fuel efficiency that is the hallmark of this product family. Every detail of the cab exterior has been studied with care to minimise air resistance. The new roof is perfectly integrated into the front end of the vehicle, presenting a flat surface that minimises drag. Even the retractable front step that provides easy access to the windshield completely disap- pears when not in use. The front grille with high radius corners and side fins, the integrated headlights, the two new bumper design with integrated deflectors, together with the new design of the wheel arches, create flowing lines that optimise air flow – and make a statement with a distinctive style. The IVECO S-WAY carries over all the advances introduced in the previous generations and adds a new cab entirely redesigned around the driver to provide the ultimate driving environment with outstanding ergonomics and controls layout. The ergonomic layout of the controls ensures all the key functions are within easy reach of the driver. The multi-func- tional steering wheel, with 22 switches, puts all the necessary functions, at the driver’s fingertips this set-up eliminates distractions for the driver who can oper- ate without ever needing to move their hands from the steering wheel. WHAT ROLE DOES SUSTAINABILITY PLAY AT IVECO? Sustainability entails our responsibility to make this job, which is crucial for our so- ciety. The new IVECO WAY range is the culmination of a product innovation cycle that improve productivity and fuel ef- ficiency to face the sustainability concept. It addresses the key trends driving the transport industry: a blurring of the lines separating the vehicle and the services around it, the advanced connectivity, the need to attract and keep highly skilled professional drivers, and increasingly de- manding requirements in sustainability. SHED SOME LIGHT ON THE CHALLENGES IVECO FACES IN THE REGION. The product we present now is the sym- bol of our re-creation and re-invention. The new IVECO heavy range exemplifies the achievements of a product innovation cycle developed step by step over the last years. When we decided to develop the new model, we knew we were building the truck for the next decade, facing a high frequency and amplitude of regula- tory challenges around emissions, safety, and connectivity.
22 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM COVER STORY LNME T he 21st century has reshaped the logistics industry by advancing technology, new business models, and causing dramatic shifts in customer behavior. In the last decade alone, we have seen a transformational pace perhaps greater than in the past 100 years combined. Wave after wave of disruptive technologies, from cloud computing to collaborative robots, big data analytics, artificial intelligence, and the Internet of Things, have challenged supply chain resilience and industry performance. The pandemic caused another drastic shift. It accelerated eCommerce growth and industry digitization by years, putting tremendous pressure on logistics players to shift gears and think in agile mode to weather the storm. DISRUPTING LOGISTICS THE CHIEF EXECUTIVE OFFICER OF DHL EXPRESS MENA SPEAKS TO LOGISTICS NEWS ME ABOUT NEW TECHNOLOGIES THAT ARE REDEFINING THE LOGISTICS INDUSTRY NOUR SULIMAN
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 23 “IT HAS BECOME ABUNDANTLY CLEAR THAT LOGISTICS IS ENTERING A TRANSFORMATIVE DECADE AND THOSE WHO DO NOT EMBRACE TECHNOLOGY INNOVATION WILL BE HARDEST HIT.” LOGISTICS NEWS ME | JANUARY 2022 | 23
24 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM COVER STORY LNME TRANSFORMATIVE ERA “In light of the business and social trends to come, it has become abundantly clear that logistics is entering a transformative decade and those who do not embrace technology innovation will be hardest hit,” explains Nour Suliman. “Key moves to scale and adopt new technology, automa- tion and digital tools need to take centre stage on the strategic agendas of logistics and supply chain organisa- tions and will ultimately determine industry leadership positions in the future.” With the turning point of the COVID-19 crisis, the subsequent shocks in demand and supply, and the spike in online commerce, key evolving technologies have come to the forefront, and will pave the way for resilient supply chains and industry progress in the coming decade. The Internet of Things (IoT) has had a profound impact not only on logistics but the world at large. With its vast potential to link billions of objects and connect virtually anything to everything, IoT and the new generation of communications technologies powered by higher speeds, increased capacities and greater flexibility of 5G networks, are accelerating data-driven logistics and proving to be vi- tal drivers of higher industry efficiency and service quality. As the integration of IoT in supply chains becomes easier and less costly, it promises far-reaching payoffs for logistics, generating actionable insights that drive change and new solutions. “IoT devices and the data they collect will be crucial in overcoming the complexities of logistics networks by enabling enhanced visibility, transparency, reliability, security and supply chain efficiencies. This in turn will create a more dynamic and customized delivery service which is paramount to our business,” states Suli- man. DATA-LED APPROACH Big Data Analytics is fast transforming the industry. It holds the key to better issues diagnostics, network planning optimisation, customer service enhancements, disaster risk mitigation, and new business model creation based on predicted future scenarios. “As worldwide complexity grows, maintaining peak efficiency while processing millions of pieces of informa- tion daily on orders, shipment movements, locations, is no trivial task. A data-led approach leveraging analytics should be a strategic priority for the supply chain to derive forecast models and build future strategies,” explains Suliman. 24 | LOGISTICS NEWS ME | JANUARY 2022 WWW.CBNME.COM
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 25 DISRUPTING LOGISTICS | NOUR SULIMAN, CEO, DHL EXPRESS MENA Artificial Intelligence (AI) is finding strong adoption within logistics. While high capital costs and tough requirements are putting a hamper on speedier progress, re- search firm McKinsey predicts that almost a third of the USD4.2 trillion of value to be created by AI in the next 20 years will result from applying the technology to supply chains alone. “AI’s predictive capabilities will be criti- cal to solving complex challenges related to our business operations, resulting in more dynamic route optimisation, capac- ity accuracy, and demand prognostics. This will have a knock-on effect on cost and operational efficiencies in key vari- ables such as last-mile delivery, and will definitely create new customer experi- ences,” clarifies Suliman. As AI becomes more intelligent with its predictive technology, logistics can step into new territory of anticipatory delivery models, supplying goods to customers before they even realize what is needed. AUGMENTED AND VIRTUAL REALITY The social and travel restrictions imposed by COVID-19, have catalysed greater adoption of Augmented and Virtual Real- ity technologies in the realm of logistics. “AR and VR is slowly but surely perme- ating our sector; and the blending of the digital and physical worlds is enabling us to better drive cost savings, productivity, and optimize training,” explains Suliman. Smartglasses for example have had pro- found effects on inspection and quality assurance, as well as repair and mainte- nance and according to Suliman, DHL has systematically rolled out smartglasses to enhance the traditional picking pro- cedure, citing 25% faster pick time and nearly 100% accuracy. The rapid pace of technology advance- ment and greater affordability are driving the integration of more robotics and automation in the logistics industry. Referencing the International Federation of Robotics, USD3.7 billion worth of logistics systems (111,000 robots) were sold in 2018, a 53% jump from the year before. In 2022, this is expected to grow to USD22.5 billion. Advanced robotics and automation in the supply chain hold great power to boost output, cut costs, and meet growing customer demand. “As logistics robots are diversifying and achieving higher proficiency with human- like dexterity, they are taking on more and more supplementary roles in the supply chain; be it assisting workers with warehousing, transportation, or even last-mile delivery activities. This allows us to free up our human resources and re- allocate them for better utilisation.” Innovation in bionic enhancements is also picking up pace although there are still many hurdles to overcome in terms of high cost and usage explains Suliman. “Advanced wearables and exoskeletons are being used to augment human capa- bilities and support logistics workforces in areas such as training, communication, process execution, and optimisation. “Most importantly, they can minimize health and safety risks in the workplace related to sorting, picking, packing, (un) loading, and inducting parcels.” WEARABLES AND AI From headbands that detect driver fatigue, to protective wear that monitors the handling of hazardous materials, and exoskeletons that facilitate easier manual activity, the logistics sector will increas- ingly be exposed to new technologies that monitor posture and movement and help to reduce injury. Although legal, regulatory and safety restrictions have halted the wide-spread adoption of autonomous road and aerial vehicles, in the last few years we have seen this concept mature and is gradually entering the shared and public spaces. “AS LOGISTICS ROBOTS ARE DIVERSIFYING AND ACHIEVING HIGHER PROFICIENCY WITH HUMAN-LIKE DEXTERITY, THEY ARE TAKING ON MORE AND MORE SUPPLEMENTARY ROLES IN THE SUPPLY CHAIN.” >>>
26 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM COVER STORY LNME “Driverless trucks, rovers, drones; all hold vast potential to upgrade logistics because they can unlock new levels of safety, efficiency, and quality; this is especially important in the last mile delivery leg which accounts for more than 50% of total fulfilment costs,” states Suliman. Driverless trucks have made significant headway, proving capable of slashing delivery time and opera- tional costs; while the need to reduce contact during the COVID-19 pandemic prompted the use of rovers and Unmanned Aerial Vehicles (UAVs) into the supply chains. According to Suliman, despite the technology and regula- tory challenges, the potential benefits are too great for industry leaders to ignore. Enhanced transparency Blockchain is fast becoming a widely used technology in logistics. Given that global supply chains are inherently fragmented, having a single information system that is accessible to all transaction parties - from customers, to operators, and authorities - facilitates greater trust and transparency. “This is especially important with regulatory and government processes where trust is a vital part of the transactional cycle which at the moment is reliant on more traditional paper methods.” In partnership with Dubai Customs, DHL developed and launched TED-X, a blockchain platform solution in the UAE for cross-border e-commerce. In less than a year, almost 7,000 shipments were digitally processed in the blockchain system, saving USD10,000 in duties and customs for DHL customers and enabling 60% product revenue growth for platform users. While the industry is consistently exploring how Block- chain and other such distributed ledger technologies can be applied, the use of blockchain-based smart contracts is being expanded for processes beyond payment and cross- border customs documentation. The potential adoption of cryptocurrency as viable payment will also create opportunities for new services and business models in logistics. While volatility is still a concern, recent announcements and speculations of new digital currencies being released by giants Amazon, Apple, Facebook, and Google in the next couple of years, may fuel widespread consumer adoption once imple- mented. “Just like the debit, credit, and PayPal methods of payment, cryptocurrencies are a viable payment method for logistics products and services. More widespread acceptance of crypto will strengthen the competitiveness of logistics providers and further their integration in the digital consumer world,” explained Suliman. “WE MUST ENSURE THAT OUR PEOPLE FEEL COMFORTABLE WITH HANDLING THESE TECHNOLOGIES AND PRIORITISE UPSKILLING TO BEST CAPITALISE ON THE SOPHISTICATED SOFTWARE AND EQUIPMENT AVAILABLE AT OUR DISPOSAL.”
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 27 DISRUPTING LOGISTICS | NOUR SULIMAN, CEO, DHL EXPRESS MENA Disruptive trends 3D printing is considered one of the most potentially disruptive trends for logistics, and the pandemic gave a glimpse of how it could impact the industry in the future. The unexpected spike in demand for PPE and ventila- tion machines meant traditional manufacturers could not ramp up supply in a timely manner. Companies and individuals stepped in to produce critical healthcare equipment, while local supply chains had to rapidly adapt their logistics patterns to deliver from within communi- ties, instead of from abroad. While the widespread adoption of 3D printing is still many years away, its potential to revolutionize how and where items are produced opens a world of opportuni- ties for the industry. According to Suliman, logistics players can take centre stage as orchestrators of complex and fragmented supply chains for raw materials and end products, as well as B2B printing services and delivery. Regional logistics networks will expand as advances in 3D printing technology allow more product types to be made from diverse materials as well as locations. But while technology investments will continue to be essential to operate successfully, according to Suliman, logistics is a service industry which heavily depends on trust - a human connection that ultimately, can only be nurtured between people. “We must ensure that our people feel comfortable with handling these technologies and prioritize upskilling to best capitalise on the sophisticated software and equip- ment available at our disposal; at the same time, industry leaders must also execute effective change management strategies to encourage and motivate employees through this transformation.” LOGISTICS NEWS ME | JANUARY 2022 | 27
28 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM CONTINUOUS GROWTH TRUCKS LNME U D Trucks has announced sales growth in the MEENA (Middle East, East and North Africa) region of approximately 30 percent in 2021, continuing an upwards trend for the brand, which had experienced 6 percent growth in the previous year. The Japanese commercial vehicle manufacturer recorded an increase in sales in most markets, including Saudi Arabia, the United Arab Emirates, Qatar, Pakistan and a number of countries in East Africa. vvUD Trucks’ flagship market, Bahrain, saw an increase of around 40 percent, reinforcing the brand’s number one status in the country. The trucks brand also saw an increase in sales by about 30 percent in Qatar. Sales also grew in Saudi Arabia, which is UD Trucks’ biggest market by volume, by 24 percent. The United Arab Emirates, which hosted the regional launch of the brand’s Euro 5 models, registered an increase of 22 percent compared to 2020. Outside the Middle East, UD Trucks earned positive traction in Pakistan where it enjoyed an impressive year. Similarly, the brand registered significant growth in East Africa in 2021, where a number of strategic deals for both heavy-duty and medium-duty trucks were signed off, despite the challenging business climate. The growth came as a result of a fantastic collaboration and coordinated effort by UD Trucks and its partners throughout the region and their joint focus on supporting UD Trucks announces exceptional growth across the MEENA region in 2021
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 29 EMPOWERING TRADE | DP WORLD’S DUBUY.COM UD customers. The brand’s well-built and robust products, the introduction of the Euro 5 range and upgrades to the Euro 3 line-up, a strong retail network and partnerships, and the impact of its ‘Better Life’ strategy, have all played significant roles in the company’s success. UD Trucks’ widest-ever range, which covers almost all segments in the heavy- duty and medium-duty truck sector, and the nature of the brand’s product portfolio have also been crucial factors in this growth. The range has been developed to meet the market’s needs by covering all key segments in the industry. UD Trucks’ focus of launching new trucks that will enhance profitability for customers by lowering the total cost of ownership has also been crucial. An important factor in the Japanese brand’s expansion has been the introduction of upgraded Euro 3 models as well as the brand’s new Euro 5 range of its popular Quester and Croner trucks. The launch of the Euro 5 models is a result of UD Trucks’ strategic vision and objective to ensure peace-of-mind for its customers by allowing them to better prepare for running more environmentally-friendly fleets as new regulations are introduced across the fast- developing region. The new range reduces NOx emissions by about 43 percent compared to Euro 4 models, while providing an enhanced driving experience and safety. The upgrades to the Euro 3 trucks are centred around creating a more driver-centric experience. They receive similar upgrades to the Euro 5 range, including a new instrument cluster, the ESCOT automated manual transmission, body builder module and the UD Trucks Telematics Services. Another factor in the brand’s growth is its exceptional regional retail network. Their commitment to providing and delivering the highest quality customer service and aftersales support is supported by comprehensive warranty offers and readily available spare parts, which prioritise the smooth operation of customers’ businesses. UD Trucks’ Telematics services allow its customers and retail partners to follow the trucks’ performances over time, creating a closer relationship with the brand’s customers. 2021 was also the year that saw UD Trucks implement its ‘Better Life’ strategy. The strategy has allowed the truck brand to demonstrate its commitment to providing sustainable logistics solutions and to delivering a better life for both people and the planet. This strategy reflects UD Trucks’ objective to becoming a Japanese leader of sustainability in the industry. Mourad Hedna, President of UD Trucks MEENA, commented: “The resilience our brand showed in 2020, built around a consistent and comprehensive strategy and supported by our strong regional partners, provided a solid platform for us to build on in 2021. Registering about a 30 percent sales increase in one year is a remarkable feat. I am grateful to the UD Trucks MEENA team, our customers, partners, and stakeholders throughout the region for their hard work and dedication. Together, we look forward to another positive year as we continue on our path to become a sustainability leader.” > UD Trucks registered sales increase of around 30% in the MEENA region > Qatar ranked first in growth followed by Bahrain and Saudi Arabia > Saudi Arabia remains UD Trucks’ biggest market in the region > Introduction of Euro 5 products, upgrades to Euro 3 models, strong retailer network and ‘Better Life’ strategy played key roles in the growth Mourad Hedna, UD Trucks MEENA President
30 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM ELECTRIC FLEETS LNME E lectric charge point infrastructure is set to undergo significant trans- formation in the Middle East as the adoption rate of electric vehicles increases, something which is seen as a significant opportunity for growth in the region. In this interview, we identify how this will influence the logistics sector. How is the EV market impacting the lo- gistics and supply chain sector? Recent issues have certainly tried to hin- der the progress of electric vehicles in the Middle East and across the world. Chip shortages have slowed down EV manu- facturers from producing and delivering vehicles to promised customers, while the fallout from the Covid-19 crisis contin- ues to be felt in even the most efficient of factories. However, both problems are short- term and have done nothing to stop the appetite of electric vehicles from a con- sumer standpoint. The average EV also requires 40% fewer parts than a petrol or diesel powered one, making the life of a logistics manager a little easier, and there are micro factories popping up in cities that are developing fewer compo- nents and parts that remove the need for a lengthy supply chain. We are in a period of fundamental change for the automotive sector, but the logistics industry has so far shown it can adapt to the changing needs of manu- facturers as well as a global pandemic without severe disruption to the supply chain. A GREENER TOMORROW Electric vehicle (EV) charging app, Monta, and e-mobility solution provider, CITA EV, recently partnered to help supercharge EV charge point infrastructure in the Middle East, Casper Rasmussen, CEO and Co-founder at Monta tells us more
EMPOWERING TRADE | DP WORLD’S DUBUY.COM What does the partnership between Monta and CITA EV Middle East mean for the region? The Middle East is one of the most prom- ising markets for clean transportation technology on the planet right now, with the sales of EVs expected to skyrocket. But without the right infrastructure to support vehicles, this progress will be stunted, which is why partnerships like this are so important. Monta has signed an exclusive partner- ship with CITA smart solution for the Middle East region. Monta would be supporting CITA smart solutions with its app and back-office resources while CITA would provide the hardware and installa- tion points for the end clients. We strongly believe in this partnership and look for- ward to achieving new milestones with CITA in the Middle East. The partnership enables CITA to lead the EV charging infrastructure in the MENA region. Using the Monta charge point management system, CITA will ex- pand the charging network, while offering a seamless EV charging experience with multiple payment solutions and smart charging features such as smart charging, smart queue, and smart booking for all EV drivers. The partnership will improve the accessibility of EVs as a more sustain- able mobility choice in the region. As EV sales continue to increase in the region, we need to be able to provide and install more charge points. However, it’s impractical to have cables and chargers installed at every home right now, and we see the business community playing an important role in providing more charge points to EV drivers while adding new revenue streams for themselves - a win- win situation and one that can help drive up demand for electric vehicles. Another important point is that the partnership will create a legacy free EV charging infrastructure in the MENA region. A lot of the problems we see in Eu- rope revolve around a poorly structured foundation, which isn’t built to scale. That means that Europe right now has prob- lems accommodating the growing number of electric vehicles. Together with CITA, we’re taking all the learnings from Europe and implementing them in the MENA region to avoid those mistakes that early movers in Europe had made. While it is important to move away from oil, the region still depends on coal to produce electricity. Is this a cause for concern? We know all too well the long-lasting damage that petrol and diesel engine vehicles have on the planet. And while the region is still heavily reliant on fossil fuels, a significant shift towards clean and renewable energy is always going to take some time. What’s promising is that we have seen a big change in policy during the past five years from countries in the region. Qatar and Saudi Arabia are pushing for at least 10% and 30% of cars on their respective roads to be electric by 2030, while the UAE is aiming to have 42,000 electric vehicles on its streets within the same period. This might seem a long way away, however sales of electric vehicles are increasing year-over-year in the Middle East. Change will happen, it’s only a mat- ter of time. Tell us why you chose to partner with each other. Although, Monta is still a young com- pany, we’ve grown a lot in a very short amount of time. We’ve recently launched our app for EV drivers and charge point management system for charge point own- ers across countries in Europe and the UK, and we are constantly looking to grow and provide open EV charge solutions to businesses and drivers across the world. CITA already has strategic partners and a good network in the ME. We already work with them in the UK market and having looked at the potential growth op- portunities in the ME, we decided to part- ner with CITA to support them with back office and app. CITA liked the idea of having a proven software provider which they already use in the UK and are very happy with, so it was an easier transition to strike a mutual deal for the ME region. CITA EV is an important player in the market, and it shares the same vision as Monta to help increase the rate of EV charge points in the region to better de- velop the market, so we knew it would be the perfect partnership between the two businesses. Together, our aim is to deliver solutions that make driving and charging electric vehicles as simple as possible so that more businesses and people can ben- efit from them. “THE SWISSLOG SITE ASSESSMENT PROCESS IS DESIGNED TO HELP YOU DETERMINE THE FEASIBILITY OF YOUR FACILITY TO ACCOMMODATE AUTOMATION AND IDENTIFY ANY LIMITATIONS THAT MUST BE ADDRESSED BEFORE AUTOMATION CAN BE DEPLOYED.”
32 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM WAREHOUSING LNME THE FUTURE OF WAREHOUSING Automation, robotics, and energy efficiency are at the centre of warehouse innovation. David Taylor, Commercial Director at Flogas reveals
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 33 THE FUTURE OF WAREHOUSING | DAVID TAYLOR, COMMERCIAL DIRECTOR AT FLOGAS T he rise of eCommerce is underway and impacting our highstreets – even before the rise of Covid-19. Due to the pandemic, the shift from physical shops towards on- line spending has accelerated by an average of five years. In 2020, 87% of UK households made purchases online and recent statistics show that 70% now prefer it. Now, eCommerce is booming, and it is a trend that is here to stay, with online re- tail spending in the UK expected to reach GBP75 billion by 2024. So, what does this transition towards digital spending mean logistically for businesses? The race is now on for retail- ers and third-party logistics (3PL) provid- ers to secure more warehouse space and capture a share in this growing market. As is stands, warehouse space has already increase by 73% since Covid-19 restric- tions began in March 2019. In addition to this, Brexit also played a role in companies bringing their supply chains closer to home. It’s predicted that, by 2024, the impact of growing eCom- merce sales in the UK could require an additional 92 million sq ft of warehouse space. Businesses need also address speed and accuracy, with the average consumer expecting rapid deliveries of products that are both made to order and easily returned. Therefore, the pressure is on for businesses to operate as efficiently and effectively as possible to service a growing marketplace with increasingly high expec- tations – and all with fewer errors and at a lower cost to serve. This is where technology is set to play a major supporting role, bringing fun- damental changes to the ways in which warehouses operate. So, what exactly does the future hold for warehousing? Here, we will explore how technology and energy efficiency will be the driving force behind a successful, smarter, and more sustainable future. The Internet of things (IoT) The IoT broadly refers to the connection of devices and sharing data via the in- ternet. In the world of warehousing, this has become an increasingly important driver in boosting automation. Thanks to the IoT, modern warehouses can be more connected, coordinated, and seam- less in their operations, helping them manage escalating demand and run more efficiently. IoT sensors give an object digital intel- ligence. This enables devices to commu- nicate with other online systems in real- time and share vital data with warehouse workers. Businesses can use the IoT to connect their equipment, robots, drones, and pallets, while monitoring their in- ventory and even supervising employees remotely. “RENEWABLE ENERGY IS SET TO PLAY A MAJOR ROLE IN HELPING WAREHOUSES BECOME MORE SUSTAINABLE. WITH LARGE ROOF AREAS AVAILABLE, THEY ARE ALREADY PERFECTLY SET UP TO HARNESS ENERGY FROM THE SUN WITH SOLAR PANELS.” >>>
34 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM WAREHOUSING LNME The IoT is particularly useful for a real- time view of inventory and capacity. Busi- nesses can spot gaps when they appear and make best use of available space. Meanwhile, customers can receive full transparency on package tracking. Warehouse management systems (WMS) A fully optimised WMS can enhance a business’s productivity, boost efficiency, and lower costs by digitising its processes. It also helps avoid common mistakes like slow shipments, poor inventory manage- ment, or incorrect product details – all of which can be costly and lead to unhappy customers. This software assists with an extensive range of key day-to-day operations. These activities might include inventory management, stock replenishment, order picking, labour management, and ship- ping. Ultimately, it gives an insightful and holistic overview of operations. As a result, informed decisions can be made. For example, an accurate, real-time view of inventory means companies can effectively gauge stock needs and avoid back orders. A WMS can even be used to boost productivity amongst workers, matching them to specific jobs at the right time, and guiding them around the ware- house in the most efficient manner. Increased automation Automation has become a key part of boosting warehouse operations. This can enhance efficiency, speed, accuracy, and safety. Over the coming years, all ware- house operation is expected to have some level of automation. In fact, automation is already a significant market, represent- ing over USD10 billion in annual global spending. There are lots of exciting emerging technologies on the horizon, and it ap- pears that the more established, proven technologies will have the biggest initial uptake. Recent industry research reveals that 65% of warehousing operations are expected to invest in conveyors and sorta- tion systems over the next three years. Close to 56% will adopt shuttle sys- tems, which allow warehouses to increase throughput and storage density. Even well-established technology – such as stacker cranes and traditional automated guided vehicles (AGVs) – are expected to see relatively high levels of automation adoption. A way to help transport bulk goods quickly and safely, forklift trucks (FLTs) are a popular form of automation in warehouses. Modern FLTs are fast to fuel, as they do run on liquid gas rather than batteries. Therefore, warehouses with their own centralised supply tank can benefit from automatic top-up technol- ogy. This means they always have the power they need, increasing productivity and reducing downtime. Robot installations As we look to the future, robots are expected to take centre stage. In ware- houses, robots can help operations be- come more efficient and productive whilst reducing errors and improving safety. It’s estimated that there’ll be around 50,000 robotic warehouses by 2025 with over four million robot installations. Robots are already used for a whole host of warehouse functions, from pick- ing and packing, to sorting, batching, transporting, inspection, and security. Many large corporations are investing in these emerging technologies. As of 2021, Amazon has around 350,000 mobile drive units. Mobile robots have been trending over the past couple of years. Among their
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 35 EMPOWERING TRADE | DP WORLD’S DUBUY.COM many talents, they are particularly help- ful for moving goods from warehouse shelves to fulfilment zones. They can also be programmed to perform duties tradi- tionally carried out by conveyors, manual forklifts, carts, and towing machines. Drones are also becoming increasingly important. They are affordable, easily able to reach any part of a warehouse, useful for inventory management (working in tandem with barcode technology), and able to support workers with shipping and delivery. Energy efficiency Warehouses often have high energy requirements, from heating to cooling and lighting. According to the Orlando Utilities Commission, energy costs typi- cally account for 15% of a warehouse’s operating budget. Therefore, businesses are keen for warehouses to become more energy efficient. As well as reducing costs, this will minimise their impact on the environment and reduce emissions. Renewable energy is set to play a major role in helping warehouses become more sustainable. With large roof areas avail- able, they are already perfectly set up to harness energy from the sun with solar panels. Renewable green gas will also be a key part of the future sustainable energy mix. Warehouses will be able to use renew- able energy for heating or even to power their forklift truck fleet. Once it’s widely available, warehouses already running on commercial LPG will be able to switch to renewable green gas and become carbon neutral without changing any of their equipment. Lighting is another big energy consum- er for warehouses. Significant savings can be made by upgrading to more efficient LEDs, bringing in more natural light with skylights, and controlling lighting more effectively. For example, a warehouse could have automatic lights-out areas where human workers are absent. Greener, smarter warehouses There’s no doubt that warehouses are getting greener, and there are a whole host of other efficiency measures avail- able. Energy management systems; cool roof systems; radiant heaters; high- volume, low-speed (HVLS) fans; green building materials; and measures to re- duce, reuse, and recycle materials can all have a major impact. These green initiatives, married with the introduction of digital intelligence, have increased automation. This emer- gence of new technology means that we can expect a truly smarter, more sustain- able, and more productive warehouse in the future. Overall, the future of warehousing is technological. Warehouses will be digi- tally intelligent and able to communicate efficiently. For example, warehouse man- agement systems might organise the daily activities of shipments and so on. Modern forklift trucks have evolved to rely on liquid gas, improving productiv- ity in the workplace. Robots operate alongside warehouse workers to optimise labour and companies are investing in renewable energy sources to lead the way in sustainable manufacturing. How will you modernise warehousing? “LIGHTING IS ANOTHER BIG ENERGY CONSUMER FOR WAREHOUSES. SIGNIFICANT SAVINGS CAN BE MADE BY UPGRADING TO MORE EFFICIENT LEDS, BRINGING IN MORE NATURAL LIGHT WITH SKYLIGHTS, AND CONTROLLING LIGHTING MORE EFFECTIVELY.”
36 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM OP-ED LNME T he innovations and technological advancements being widely used in every step of business operations and managements brings limitless benefits and undoubtedly making work easy. Software, hardware, and other AI- powered tools increase efficiency, save money and time, encourage, and facilitate connection among stakeholders. They also significantly reduce margin error and ensure smooth workflow. One example of such software is the Order Manage- ment System (OMS). OMS is a software programme that allows managing of the order and its ac- curate inventory. It covers activities of the entire order management process such as taking, processing, receiving, and fulfill- ing a customer’s order received via omni channels. Companies of all sizes, in any industry with a supply chain, can greatly benefit from integrating this software as it enables cost optimization and yields service quality. More businesses are seeing this value as noted in the increasing number of supply chain groups investing in this software. CHALLENGES OF MANUAL TASKS For years, order management in ware- houses and supply chain groups are faced with challenges of doing manual tasks and numerous errors especially in order entry and inventory management. Data recorded on papers are often passed back and forth among departments within a supply chain, increasing risks and errors along the process. The use of different software pro- grammes also added up to the chaos, misunderstanding and miscommunica- tion within the stakeholders, as this is not centralised and unified. OMS addresses these with its ability to refine the order-to-fulfilment cycle for supply chain groups. The automation process in the system replaces the time and effort spent on manual work, and it gives control over the entire supply chain process. An OMS system also functions in optimisation of the logistics network, risks management, and reduction of the stock levels. MEETING EXPECTATIONS The rise of eCommerce activities also highlights the importance of having an OMS. It helps businesses meet the customers’ expectations such as being able to use any platforms to place orders, delivery or pick up options, and being able to return or exchange products. In addition, it helps fulfill an order that involves multiple locations and enables businesses to handle increased sales vol- umes or demands. The competitive business landscape today heightened the need for timely and standard delivery, and this has given a rise to the demand for automation systems and other AI tools. Logistics solution providers are coming up with improvised solutions to meet this as they aim to construct a responsive sector through a high performance and func- tional system like OMS. ENABLE NEW INTERACTIONS As a benefit for businesses, OMS also enable new interactions between ware- houses and stores, to an extent where any store can be a place for reception, preparation, picking, and delivery. Un- like enterprise resource planning and warehouse management systems, OMS implements assignment rules that previ- ously weren’t available. This software requires information from other systems, and therefore needs to deal with interfac- ing and data reliability. To protect your business, you need a clear perimeter in terms of functional coverage. Hence, to minimise risks, it is generally a good idea to start with inven- tory management and order orchestration followed by resource management, i.e., the preparation capacity of the warehous- es and their interactions with the flow of transport. Nevertheless, suffice it to say that while supply chain organizations focus on im- proving customers’ experience, solution providers are focused on improving the overall operations of these organisations. Both are aiming for a common goal- to meet demands and expectations. Alain Kaddoum, Managing Director, Savoye Middle East, Savoye, shares about the limitless benefits of incorporating an order management system INTEGRATION OF ORDER MANAGEMENT SYSTEM
INTEGRATION OF ORDER MANAGEMENT SYSTEM “OMS IS A SOFTWARE PROGRAMME THAT COVERS ACTIVITIES OF THE ENTIRE ORDER MANAGEMENT PROCESS SUCH AS TAKING, PROCESSING, RECEIVING, AND FULFILLING A CUSTOMER’S ORDER RECEIVED VIA OMNI CHANNELS.”
38 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM How did the pandemic affect the sustainability journey of the F&B industry? The food and beverage (F&B) industry tackles one of the most basic human needs: nutrition. The pandemic has pushed the industry to innovate solutions that address the increased demand for food safety among consumers, while carrying on the global sustainability journey. In fact, consumer behavioral change is the core drive of how the industry operated during the pandemic and beyond. According to the latest Tetra Pak Index, the pandemic has rewired today’s consumers, forcing them to rethink their priorities and behaviours, as they seek a more resilient and sustainable future. Worries about the environment are stronger than ever. Pollution and plastic litter in the ocean are the joint top environmental worry (at 83%). Global warming closely follows, cited by over three quarters (78%) of consumers. This is ahead of food waste (77%) and food accessibility (71%). Food safety and security are also top priorities for the public as the pandemic has shone a spotlight on health and highlighted weak points in our food systems. Two- thirds (65%) believe that being healthy is being safe, this heightened awareness creating demand spaces for immunity- boosting food products. PACKAGING LNME A QUEST TOWARDS SUSTAINABILITY TETRA PAK ARABIA’S MANAGING DIRECTOR, NIELS HOUGAARD, SPEAKS TO LOGISTICS NEWS ME ABOUT THE LATEST EFFORTS OF THE COMPANY IN MAKING THE REGIONAL FOOD AND BEVERAGE INDUSTRY MORE SUSTAINABLE
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 39 As a purpose-led company and a global industry leader, at Tetra Pak, we believe the world’s food systems need to transform to meet future needs of society, improving food security while reducing the impact on natural resources. We, therefore, aim to focus on three key areas: increasing access to safe, nutritious food; reducing food loss and waste; and building more sustainable value chains. Sustainability is obviously a top priority for Tetra Pak. What is the company doing to make the value chain more sustainable? At Tetra Pak, our approach to sustainability is shaped by our brand promise: ‘Protects What’s Good’. We bring this promise to life by committing to protect food, to protect people and to protect our planet. And protecting our planet is one important aspect of our sustainability approach. We have three priorities: Climate change We are minimising emissions across our value chain from raw materials sourcing through to packaging end-of- life. We have successfully delivered on our 2020 climate goal, exceeding our ambition to cap our emissions at 2010 levels despite business growth – in fact, we have reduced total emissions by 19%. Now we are working towards an even more ambitious goal: to achieve net zero greenhouse gas (GHG) emissions in our own operations by 2030, with an ambition to go net zero across the value chain by 2050. Biodiversity Our goal is to make all of our packages from 100 percent renewable materials. Already, our cartons made mostly from plant-based materials have a significantly lower climate impact than packages made from fossil or mineral sources. The lifetime carbon impact of a ‘Tetra Recart’ food package, for example, is five times less than its steel or glass equivalent. With renewable materials, products can also have positive environmental, economic, and social impacts, capturing carbon as well as reducing emissions during their lifecycle, and promoting sustainable land use and biodiversity. Circular economy We use high-quality raw materials to make our packaging and fulfil our mission to make food safe and available everywhere. Once our packaging has fulfilled its purpose, those raw materials should not go to waste. Instead, they can be collected and -using relatively simple techniques- recycled into something useful. On average, more than 70% of our packaging material is made from long, strong paper fibres that can be recycled several times. The thin layer of polymers – or plastics – in our beverage cartons can be blended with other polymers and turned into new products, such as roofing tiles, crates, carton boxes and more. A QUEST TOWARDS SUSTAINABILITY | NIELS HOUGAARD, TETRA PAK ARABIA’S MANAGING DIRECTOR “FOOD SAFETY AND SECURITY ARE ALSO TOP PRIORITIES FOR THE PUBLIC AS THE PANDEMIC HAS SHONE A SPOTLIGHT ON HEALTH AND HIGHLIGHTED WEAK POINTS IN OUR FOOD SYSTEMS.” >>>
40 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM PACKAGING LNME As we continue to drive collection and fibre recycling, we are also increasing our focus on polymer recycling in our packaging. As part of our pledge to the EU Plastics Strategy, we will work with partners to ensure that by 2030, recycling solutions are in place for all components of our beverage cartons. Recycling contributes to a low-carbon circular economy that keeps valuable materials in use. It also helps prevent littering, saves resources, and reduces climate impact. How about on a regional level, what is Tetra Pak doing to make the industry more sustainable in the Middle East? Tetra Pak has been present in the Middle East for over four decades, supplying to 25 countries in the Middle East, Europe and Asia including most of the demand in Saudi Arabia. Sustainability as it embodies our brand promise – Protects What’s Good – pushes us to seek for opportunities across the entire recycling value chain, together with other stakeholders across the industry, to improve the way carton packaging gets collected, sorted, and recycled. The goal is to scale the recycling of paper-based cartons, helping to make them the world’s most sustainable food package. We recently signed two industry-first joint initiatives. the first with Obeikan Paper Industries (OPI), a Riyadh-based paper mill that produces 180 thousand tons of duplex board annually, to recycle used beverage cartons in Saudi Arabia and manufacture new products. the second with regional recycling leader, Saudi Top Plastic (STP) Factory, to recycle ‘Polyethylene and Aluminum Polymers’ resulting from the collection and recycling of used cartons. Creating a circular economy has been a top priority for Tetra Pak over the past few years, even before the pandemic hit. Update us on your efforts to boost this business model, with recycling at the core of it. Collaboration and partnership are especially vital to recycling, which is one of the key enablers of a low-carbon circular economy. We have worked to develop collection and recycling infrastructure across the globe for many years. The global number of our carton packages collected for recycling increased from 32 billion in 2010 to 49 billion in 2020. We also launched a major global communications campaign called Go nature. Go carton. By fostering debate about sustainable packaging and laying out our approach in a more transparent way it sets out our belief that sustainable, high-performance packaging is critical to help mitigate climate change and address other environmental concerns while feeding a growing population. With a strong sustainability foundation and bold ambitions to lead the sustainability transformation, we will continue to pioneer a sustainable future that protects what’s good: Food, People, Planet. How do you see the Middle East progress in terms of sustainability? I believe that the Middle East is on the right track to achieving remarkable sustainability achievements. In 2017, the UAE launched ‘Energy Strategy 2050’, aiming to increase the contribution of clean energy in the total energy mix from 25% to 50% by 2050 and reduce the carbon footprint of power generation by 70%, thus saving Dhs700 billion by 2050. Since then, the UAE Government has been promoting vast changes in the decarbonizing process of the supply chain, logistics and transportation in collaboration with financial and industry factors such as local banks and commercial ports authorities. In Saudi Arabia, sustainability has been at the heart of Vision 2030 since its inception. The Kingdom is now ushering in a new era as it aims to reach Net Zero by 2060. Regional supply chain stakeholders are on the lookout for innovative implementations in different parts of the chain, from autonomous vehicles, emission monitoring drones, solar warehouses and more due to consumer demand and cost optimisation needs.
42 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM INTERVIEW LNME “WE AIM TO BECOME A TRUSTED PARTNER OF CHOICE FOR ALL CUSTOMERS IMPORT AND EXPORT REQUIREMENTS, OFFERING A COMPLETE SUPPLY CHAIN SERVICE PACKAGE FROM MANUFACTURER TO CONSUMER.”
LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 | 43 Tell us about Centre Point Logistics and what it aims to achieve? Established in 2005, Centre Point Logis- tics (CPL) is an asset-based innovative third-party logistics provider offering integrated logistics support services from warehousing, transportation, technical and skilled labour, to equipment and oth- er operations management. Centre Point Logistics adds value through strategic partnerships with 3PLs across the logis- tics industry to save resources, time and money, providing multi-national custom- ers with competitive world-class services in the region. We aim to become a trusted partner of choice for all customers import and export requirements, offering a complete supply chain service package from manufacturer to consumer. Since you took over in December 2020, how has business progressed, and what changes have you brought about? CPL’s past strategy was to be a logistics enabler, providing storage solutions for 3PL organisations that required additional storage capacity. When I took over in December, it was my intention to change the strategy to offer a complete supply chain package, focusing on a new customer base, cargo owners rather than other logistics companies. The aim was for CPL to be a one-stop-shop for all our customer requirements. In the second quarter of 2021, CPL appointed a new business development team, and they have been instrumental in the growth of the business. To give an example, to date, 50% of all CPLs revenue is being generated through the newly introduced value-added services. A CENTRAL SOLUTIONS PROVIDER | PAUL MORGAN, CEO, CENTRE POINT LOGISTICS THE CEO OF CENTRE POINT LOGISTICS (CPL) reveals his plans for the company, the changes he has brough about, and how the pandemic has impacted the industry PAUL MORGAN PROVIDER A CENTRAL SOLUTIONS
44 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM INTERVIEW LNME Another fundamental change that I have brought to the organisation is the introduction of a new warehouse manage- ment system, a web-based system that customers can access anywhere in the world that allows them the ability to track and trace their cargo accurately and in real-time. eCommerce seems to have skyrocketed in the past year. How do you see the next few years pan out? eCommerce is at an all-time high. We are currently working as a freight forwarding partner for some of the eCommerce giants in the region. By 2022, e-retail revenues will grow to USD6.54 trillion, up from USD3.53 trillion in 2019. This is a clear indication that there is significant growth anticipated for warehousing and logistics needs for this sec- tor, and I expect the speed of development within the GCC to continue at the same pace for the next few years. What are some of the most significant changes the pan- demic has given rise to? It has been well documented that working from home and quarantine restrictions have led to a boom in eCommerce and the growth was unprecedented. The pandemic has also had a negative effect on the logistic supply chain business, through shipping, as demand has increased, shipping lines have not had the capacity to meet all of their customer requirements. This has resulted in the container shipping rate to increase, in some cases by more than 400% globally. Ultimately, it has led to an increase in cost, which is passed on to the consumer. What are some of the challenges the logistics sector is cur- rently facing? The industry is still facing extraordinary demand for fleets, but the current infrastructure needs to catch up. The increase in demand has led to delays and rising prices. The cost for freight forwarding is very expensive at the moment and is set to remain high for the next 12-18 months. What is in the pipeline for Centre Point Logistics? As part of the CPL’s strategy, we will continue to focus on business development, with a focus on growing the team in 2022 and onboarding new business in the region. Operation- ally we have a world-class warehouse, a winning culture with a can-do attitude and the ability to expand quickly, as needed.
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46 | LOGISTICS NEWS ME | JANUARY - FEBRUARY 2022 WWW.CBNME.COM CARGO E very day, Emirates SkyCargo transports between 500 and 700 tonnes of food items ranging from fresh fruits and vegetables to gourmet ice creams and cheeses on its flights around the world. Over the last one year, the cargo division of Emirates airline has been transporting a new home-grown delicacy from the UAE to some of the finest restaurants in Moscow: premium oysters. Watch this video to find out more. Dibba Bay Oysters, a UAE start-up based in the emirate of Fujairah, has been growing premium oysters in the sparkling blue waters of Dibba Bay since 2016, currently harvesting around 200,000 oysters every month and set for exponential growth in the coming years. It is the first shellfish farm established in the Middle East region and founder Ramie Murray pioneered the pivot from the traditional Arabian pearl oyster industry to the farming of an edible oyster species. Largest export market Around 50% of Dibba Bay’s oyster produce is exported and Emirates SkyCargo has been facilitating the exports of these delectable oysters from the UAE to Russia, currently the most important export market for Dibba Bay Oysters. “Emirates SkyCargo is delighted to help transport this premium UAE-grown produce to some of the most discerning connoisseurs of oysters in international markets such as Russia. Air cargo connectivity plays an important role in rapidly trans- porting such time and temperature sensitive food items from the farm to the fork across the globe. “In the case of Dibba Bay Oysters, we are able to transport oysters freshly harvested in the morning to restaurant tables that very evening in Moscow. With our network, capacity and expertise in handling premium food products, we look forward to supporting Dibba Bay Oysters as well as other UAE based and international SMEs in their international expansion plans over the years to come,” said Nabil Sultan, Emirates Divisional Senior Vice President, Cargo. “When exporting live seafood, the freshness of the prod- uct through the adherence to the cold chain is of the utmost importance, and our partnership with Emirates Sky Cargo has allowed us to achieve this by supporting us in reaching many major capitals around the world within the same day of harvest. “Because of this we are able to arrive to virtually any major capital in the world fresher than any other oyster brand; Emir- ates Sky Cargo has truly enabled us to become the world’s oyster,” said Ramie Murray, Founder and CEO, Dibba Bay Oysters. Dedicated cool dollys To support companies such as Dibba Bay Oysters and other premium food exporters from around the world catering to an international audience, Emirates SkyCargo has introduced Emirates Fresh, a three-tiered product to help maintain fresh- ness of the food items during transportation by air. Emirates SkyCargo also has a fleet of cool dollys in Dubai dedicated to transporting food under temperature-controlled conditions. TO RUSSIA WITH LOVE UAE-BASED DIBBA BAY OYSTERS RELY ON EMIRATES SKYCARGO TO EXPORT PREMIUM OYSTERS TO MOSCOW LNME RAMIE MURRAY FOUNDER, DIBBA BAY OYSTERS
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